Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume IV

Budapest Legation File: 711.9 ACC: Telegram

The Chief of the United States Military Representation on the Allied Control Commission for Hungary (Key) to the War Department ⁹⁶

[Budapest,] 18 July, 1945.

The first meeting of the ACC since the Soviets announced the new order of procedure was held last night. Although this change of procedure was not accepted as an agreement based upon my proposals at the meeting of the ACC on 5 June (my message Z–121 of 6 June⁹⁷), this initial meeting indicates implementing the new plan in a cooperative spirit by the Russians.

At a conference of representatives of the Chiefs of the three Missions agenda was prepared and published prior to the conference. The principal subjects discussed were:

(a) The Hungarian Government’s request for deportation of 200,000 Schwabians from Hungary (this matter is the subject of a separate radio which follows).⁹⁸

(b) Discussed was the delivery of 557 Hungarian war criminals now in Allied hands or in Allied controlled areas. Former Premier Szalasi headed the list of names submitted by the Hungarian Government. Following a discussion it was decided to request the Hungarian Government to submit the names of approximately 40 of the most important war criminals in order that their return to Hungary may begin promptly. Final action on these two above subjects was deferred until the three respective Governments submit their proposals and instructions.

(c) Reparations to be delivered under article XII of the Armistice Agreement. Marshal Voroshilov reported that the Hungarian Government had signed an agreement on 15 June for payment of $200,000,000.00 in goods and equipment during a 6-year period. The U. S. and British representatives will be furnished with a copy of the agreement and the list of commodities.⁹⁹ The Chairman stated that practically no payments have been made to date. He also stated that Czechoslovakia and Yugoslavia are negotiating directly with the Hungarian Government for payment of $100,000,000.00; 70% [30%] of this amount to Czechoslovakia and 30% [70%] to Yugoslavia.¹

(d) Discussed was repatriation of displaced persons other than war criminals and prisoners of war; final discussion was postponed until next meeting of the ACC. Also discussed was the recent shipment of several thousand Hungarian repatriates by U. S. Army authorities from Liezen, Austria, without previous arrangements being made with the ACC or Russians (this is the subject of another radio which follows).

(e) The next meeting of the ACC was agreed to be held on 31 July and subsequently on the 10th, 20th and 30th of each month. Meetings of Chiefs of Divisions would also be held twice monthly, starting on 27 July. It was agreed that a conference between representatives of the Chiefs of each of the Missions would be held three days in advance of the ACC meeting and agenda prepared.

Complete minutes of the meeting follow by mail. Meeting was conducted in a cordial and cooperative atmosphere.

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Key

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96. Copy of paraphrase sent by General Key to Schoenfeld on July 19. General Key’s message was directed to General of the Army George C. Marshall, Chief of Staff, U. S. Army, for the Operations Division of the War Department and for the Joint Chiefs of Staff.
97. Not printed; for General Key’s report on the Allied Control Commission meeting of June 5, see p. 823.
98. For documentation regarding the interest of the United States in the transfer of German populations from Poland, Czechoslovakia, Hungary, Rumania, and Austria, see vol. ii, pp. 1227 ff. The German ethnic minority in Hungary were referred to as Swabians or Schwabians.
99. A copy of the text of the Soviet-Hungarian reparation agreement was transmitted to the Department as enclosure to despatch 124, July 23, from Budapest, neither printed (740.00119 EW/7–2345). For a brief summary of the agreement of June 15, see Department of State Bulletin, September 1, 1946, p. 394.
1. The percentages for reparations to Czechoslovakia and Yugoslavia appear to have been inadvertently reversed in this message. According to the American minutes of the Third Meeting of the Allied Control Commission, July 17, 1945, Marshal Voroshilov stated that he had been unofficially informed in Moscow that the Yugoslavs and Czechoslovaks had agreed to divide reparations from Hungary on the basis of 30 million to Czechoslovakia and 70 million to Yugoslavia. (Budapest Legation File: 711.9 ACC)